The following is a summary of the basic principles involved in determining whether a person is trading or investing for tax purposes:

(1)There is no statutory definition of what constitutes trading – it is a question of fact, to be determined by taking into account all the facts and circumstances.

(2)In order to make the determination, one must have regard to case law and the various criteria which have been drawn up over the years. However, any set of criteria (including this one) is only a guide, not to be followed religiously as a ‘tick the box’ exercise.

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